impactAlert: Paid Family Leave Tax Collection Starts July 1 for DC Employers- 06/11/2019

The District of Columbia’s (DC) Department of Employment Services (DOES) will begin collecting taxes from all local employers Monday, July 1, 2019 to fund the Paid Family Leave benefit.

This new benefit will be covered via a DC-managed insurance fund that will begin administering paid leave benefits in July 2020. Employers will fund the payroll tax, regardless of whether they provide additional leave benefits to employees.

Under this program, DC employers will contribute 0.62% of the wages of each of its covered employees (those who spend more than 50% of their time working in DC ) to the Universal Paid Leave Implementation Fund each quarter. The first contribution is due July 1, 2019.

Employer contributions will be collected electronically through the DOES Self Service online portal (in the same manner as employers make their unemployment insurance tax contributions).

For more employer information, the DOES has posted this Employer FAQ. In addition, the DOES webpage includes a downloadable Employer Toolkit plus a webinar on compliance.

The Paid Leave Act, enacted into law in 2017, provides up to eight weeks of parental leave to bond with a new child; six weeks of family leave to care for an ill family member with a serious health condition; and two weeks of medical leave to care for one’s own serious health condition.

impactAction: If you have questions or need assistance with any aspect of DOES paid leave compliance, contact us at info@impacthrllc.com or 443-741-3900.

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